Bangladesh Bank stated via a circular on Tuesday that from now on AAA-rated export credit agencies (ECAs) that are responsible for guaranteeing export goods would be able to enjoy loans as per their concern, even if they cross beyond the exposure limit.
The central bank issued this directive in exercise of its power under sections-26(Kha) and 45 of the Bank Company Act 1991, as amended. All other instructions provided in the previous circular issued on January 16, 2022 would remain unchanged.
In accordance with the previous circular regarding the matter, the central bank reduced the single borrower exposure limit to 25% of a bank’s capital from 35% as part of its measures to contain the concentration of loans among a small group of people. Although the total limit, including funded and non-funded ones, was reduced to 25%, the funded loan portion was kept unchanged at 15% of a bank’s capital.
The central bank also withdrew the extra non-funded borrowing limit for exporters, according to the previous circular.
